Gross pay vs net pay
Gross pay is what you earn before deductions. Net pay is what actually reaches your bank account.
The difference at a glance
| Term | Meaning |
|---|---|
| Gross pay | Your pay before tax and deductions. It can include salary, wages, overtime, bonus, commission and taxable benefits. |
| Taxable pay | Gross pay after certain allowable deductions, such as approved pension contributions, are taken off before income tax is calculated. |
| Net pay | The amount left after deductions. This is your take-home pay. |
Source: Revenue — Gross pay and taxable pay
Why taxable pay can be different from gross pay
Revenue says taxable pay is gross pay less certain contributions, such as contributions to a Revenue approved pension scheme, PRSA, RAC, approved income continuance scheme or salary sacrifice arrangement.
That means your income tax may be calculated on a figure that is lower than your full gross pay.
Simple example
| Line | Amount | Meaning |
|---|---|---|
| Gross pay | €3,000 | Pay before deductions. |
| Pension contribution | -€150 | May reduce taxable pay for income tax purposes. |
| PAYE, USC and PRSI | -€500 | Payroll deductions. |
| Net pay | €2,350 | Amount paid to your bank. |
Illustrative example only. Your own deductions depend on your income, tax credits, USC bands, PRSI class and pension setup.
What to check on your payslip
Check that your gross pay matches your expected salary or hours, that deductions are listed clearly, and that net pay matches what arrives in your bank account.
Source: Workplace Relations Commission — Payslips